Maude thinks delphiniums and hollyhocks are perfect substitutes, one for one.If delphiniums currently cost $4 per unit and hollyhocks cost $5 per unit and if the price of delphiniums rises to $9 per unit,

A) the income effect of the change in demand for delphiniums will be bigger than the substitution effect.
B) 1/5 of the change in demand will be due to the income effect.
C) the entire change in demand for delphiniums will be due to the substitution effect.
D) there will be no change in the demand for hollyhocks.
E) 4/5 of the change in demand will be due to the income effect.

On January 1, 2021, Parent Corporation acquired a controlling interest in the voting common stock of Foxboro Co. At the same time, Parent purchased 60% of Foxboro's outstanding preferred stock. In preparing consolidated financial statements, how should the acquisition of the preferred stock be accounted for?

For the listed items below,identify the effects on cash flow from financing activities as increasing (I),decreasing (D),or (N)having no effect on financing cash flows:

Elly Company uses a periodic inventory system. Details for the inventory account for the month of January 2016 are as follows: $$\begin{array}{lccr}& \text{ Units }& \text{ Per unit price }& \text{ Total }\\ \text{ Balance, }1/1/16& 200& \$5.00& \$1,000\\ \text{ Purchase, }1/15/16& 100& 5.30& 530\\ \text{ Purchase, }1/28/16& 100& 5.50& 550\end{array}$$ An end of the month (1/31/16) inventory showed that 150 units were on hand. If the company uses FIFO and sells the units for $9 each what is the gross profit for the month?

A) $1000
B) $985
C) $900
D) $1440

The invisible hand ensures that economic prosperity is distributed equally.

Raphael, who owes $10,000 to his credit card company, sends a check to the credit card company for $50 and marks the check "paid in full." The credit card company inadvertently cashes the check, but the mistake is caught two weeks later and they offer to repay Raphael his $50. Raphael does not respond. Does accord and satisfaction exist?

A) Yes, because the bank cashed the check and this is sufficient for accord and satisfaction.
B) Yes, because Raphael did not accept the bank's offer for repayment.
C) Yes, because the bank has to offer a refund to Raphael within one week to avoid accord and satisfaction.
D) No, because the $50 payment accounted for less than 10 percent of the balance due.
E) No, because the bank offered to repay the money in a timely manner.